Bell Canada: the Voip Challenge Essay

708 Words Sep 11th, 2011 3 Pages
The Overall Direction of disruptive Technologies
Voice over Internet Protocol is a telephone service operating over the internet.
VOIP provides quality voice communication services to anyone with access to a high speed internet connection which is a growing norm in our society. Voice over Internet Protocol is an exciting innovation to communication technology and can be delivered in one of many ways including:
1) PC to PC
2) PC to Phone
3) Phone to Phone
New Innovations generally have several impacts on businesses in the industry and the business that created it. Established businesses that do not adopt the new concept will usually be left behind the dust while businesses that do will survive.

Strategy
Bell has been pitted
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SWOT Analysis
Strengths
 Long distance VOIP-initiated call to the PSTN can be routed over the internet.
 Possibility of bundling features without additional costs.
 Instant Management of calls.

Weaknesses
 Power interruptions at the subscriber’s home can cause service loss.
 Difficult to provide 911 services.
 VOIP is still not accessible for many customers
 Difficulty managing calls from TV systems, alarm systems, faxes.
 Security vulnerabilities.
 Concerns with Quality of service.
 Diversified environment with employees with knowledge of VOIP spread out.
 Bell has low success rates in unregulated ventures.

Opportunities
 Bell still has a fairly large market share and can appeal to their customer base.
 Bell has $25 to $40 million invested in VOIP technologies.
 Bell is an excellent source of expertise in the area of VOIP

Threats
 Immense competition from providers such as Vonage, Primus, and Cableco.
 CRTC ruled “exempt regulation” which allowed competitive entry.
 In order to offer VOIP, Bell has to unbundle its High Speed Internet package which will allow its current customer base to seek other options.
 Low cost entrants are already in the market.
 Bell promotions will generate unwanted public awareness.

Career Implications
Close’s current occupation as CEO of Nextair creates a considerable amount

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